Ozona man gets 5 years, $2M fine in wool fraud

An Ozona man who defrauded a West Texas wool and mohair operation will begin serving a 63-month prison term in November for money laundering and has been ordered to pay more than $2.07 million in restitution.

Wool Growers Central Storage Corp. former General Manager Donovan "Donnie" Laughlin was involved in a scheme to defraud the company. He pleaded guilty to the charge in May and was sentenced this month in federal district court in Lubbock.

From March 2000 to May 2006, Laughlin ran a scheme in which he would make a sale but fail to transfer the funds to the owner or producer of the mohair or wool, according to a news release issued Thursday from the office of U.S. Attorney Richard B. Roper.

Wool Growers has warehouses in Ozona and Sanderson, and sold farm and ranch supplies through a retail business.

Laughlin either would keep the money from the sale of wool and mohair or transfer it to Wool Growers' retail business, the release says. Unauthorized salary checks and cash were taken from the retail business.

"These payments made the retail business appear to be more successful and ensure that his position and authority at Wool Growers would continue," the release says. Laughlin committed the fraud in some cases by not paying the producers the amounts to which they were entitled and keeping the difference, and in other cases by drawing fraudulent checks on the retail business account.

Laughlin, 60, had worked for Wool Growers since 1991.

The case was presented to U.S. District Judge Sam R. Cummings in the Lubbock court.

"Out of the money he took, approximately $250,000 went into his personal benefit," said Guy James Gray, attorney for Laughlin. The rest of the money, Gray said, stayed in Wool Growers' retail business.

"I think Donovan Laughlin is one of the few people I've been around that was truly remorseful, that he had embarrassed his family and his community, that he had taken the money," Gray said. "The owners of that business benefited a couple million dollars from his actions."

A person identifying himself as the owner or manager of Wool Growers declined comment on the conclusion of the case against Laughlin.

In July, former Wool Growers bookkeeper Tonya McGuire Stalcup was sentenced to 33 months in prison for defrauding the company of $135,000. She was ordered to pay $200,000 in restitution.

Laughlin, who is now living in Lubbock, is to begin his sentence Nov. 16.